Cement price rise was mere speculation
5/24/2012 12:34:57 PM -
Accra, May 23, GNA -The two major cement production companies in Tema, GHACEM and Diamond Cement on Wednesday said they had not increased the market price of cement as speculated by a section of the public.
This followed an unannounced visit by Ms Hannah Tetteh to the two companies to get first hand information from management about the cause of the claimed increase in the price of the product.
At GHACEM, the Minister was informed that the market price was GHâ‚µ13.34 while Diamond Cement said the cost of the product was GHâ‚µ12.42.
The two companies attributed the problem to low production, which could not meet the demands of the public after power outage, but assured the minister that the situation had been rectified and that full production and supply would resume by next week.
GHACEM however stated that the company had not stopped production as the public was made to believe.
It expressed dismay at how retailers took advantage of the situation to increase the cost of the product to almost 50 per cent on the market, thereby creating the wrong impression about the exact situation on the ground.
According to GHACEM, a new plant is under construction to double the capacity of output, hoping to increase production by 1.5 million this year.
Mr Anthony Arden Boachie, Head of the Commercial Department at Diamond Cement said the company had resumed production, saying that it intended to increase production by 15 per cent.
He stated that Diamond Cement was working on another factory in the Eastern Region which is expected to commence production by the first quarter of the year.
Ms Tetteh advised all cement dealers to discontinue the price rises as the situation had been resolved and normal supply was to be restored by next week.
She expressed satisfaction at the responses by the two companies, adding that the purpose of her visit, which was to inform the public on the exact state of the situation, was achieved.